Canacol Energy Ltd (Alberta) T.CNE

Alternate Symbol(s): CNNEF

Energy Oil & Gas E&P

Canacol Energy Ltd. is a Canada-based natural gas exploration and production company with operations focused on Colombia. The Company’s production primarily consists of natural gas from the Esperanza, VIM-5, VIM-21 and VIM-33 blocks located in the Lower Magdalena Valley basin in Colombia. Its production also included crude oil from its Rancho Hermoso block in Colombia (Colombia oil). It supplies approximately 17% of the country’s gas needs and more than 50% of the Caribbean Coast’s gas demand. Its gas fields which produce from the Cienaga de Oro and Porquero proven reservoirs are connected to its central Jobo gas processing and treatment facility through more than 169 kilometers of flow lines, mainly flexible steel flow lines. The Company operates over 1.5 million net acres in 11 exploration and production gas contracts in Colombia, located in the Lower & Middle Magdalena Basins. Its natural gas processing and treatment facilities consist of three plants.

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Canacol Energy Ltd (Alberta)

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Comment by Crotchon Aug 27, 2014 8:15am

157 Views

Post# 22881374

RE:RE:RE:RE:RE:RE:RE:Canacol Energy Ltd. Tests 15.5 MMSCFPD at Palmer 1 Gas Disco

1234robt wrote:
Yes - that news would be material and we should get the news report clarified on this point.

I don't think clarification is required though (just my opinion). It seems clear to me that CNE will be maintaining currect gas production as per current contracts. They stated that the new contracts don't come into effect until Dec 2015.

The well has been tested - there's nothing in the NR that indicates this well constitutes an increase in production, or an increase in expected sales. It can be used to meet current contractual obligations at this point (or at least when it's brought online).

At the end of the day, this is still great news for the company and its shareholders. However, it would be folly for those in the market to assume that this well constitutes an immediate increase in production and therefore a positive step towards meeting CNE's projected guidance. Unless of course new/amended contracts appear.

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